Channel Partners, MSPs and Carbon-Neutral Hardware: Device as a Service Revenue Opportunities Ahead?

How can MSPs and IT consulting firms offer their customers carbon-neutral hardware that generates monthly recurring revenue (MRR)? Perhaps a partnership between Circular Computing and Total IT Global provides some guidance.

Indeed, the two companies are working together to "supply the world’s first BSI-certified remanufactured laptops." Circular Computing Director Conrad Mohr (pictured, above left) and Total IT Global Managing Director Ajay Patil (above right) shook on the deal at Circular Computing’s Re: Sustainable IT Summit in April 2024.

Related: NTT Data, HP Launch Sustainable Device as a Service for PC Carbon Reduction

Total IT Global, based in London, United Kingdom, employs more than 2,200 certified technical experts across 128 countries. Key areas of expertise include IoT and field service management; Device as a Service (DaaS), IT Warehouse as a Service (ITWHaaS) and IT Asset Disposition (ITAD).

Circular Computing, founded in 2017, is based in Portsmouth, Hampshire, England. The company has a remanufacturing process that delivers "certified, reliable and quality IT." Key focus areas include carbon neutral remanufactured HP, Dell and Lenovo laptops that deliver up to 40% cost savings compared to brand new latest models, as well as significant sustainability benefits, the company asserts. (Note: Sustainable Tech Partner has not independently confirmed the sustainability claims.)

Device as a Service Meets Sustainable Hardware

Under terms of the Circular Computing-Total IT Global relationship, the two companies say:

• Each laptop in the program will undergo a "rigorous 360-point process" to ensure it performs “equal to or better than new” while saving on both emissions and costs.
• Remanufactured laptop performance is guaranteed by the BSI Kitemark, a UK service and product quality trade mark.
• Customers can leverage certified carbon-neutral IT hardware that produces only 6.34% of CO2 emissions compared with an average new laptop, according to a peer-reviewed scientific study by Cranfield University. 
• Total IT Global will also offer asset financing, tech support and Device as a Service (DaaS) options.

Demand for such services appears to be growing. Indeed, the global market for refurbished computers and laptops is expected to reach $47.3 billion in 2033, up from $17.9 billion in 2023, according to Future Market Insights. That's a 10.2% compound annual growth rate (CAGR), the report said.

Moreover, the refurbished laptop and PC market represents more than a one-time sales opportunity. Savvy MSPs and IT solutions providers can generate recurring revenues from such engagements. The recurring revenue opportunities span hardware as a service (financing options designed as monthly payment plans); managed security & data protection; associated SaaS applications; IT asset disposition (ITAD) and plenty more.

Demand for ITAD services from MSPs and channel partners is particularly strong. Indeed, annual spending on ITAD is expected to reach $34 billion by 2030, up from $16.8 billion in 2022, according to Research and Markets. That's a 9.2% compound annual growth rate (CAGR), the researcher said.

Total IT Global and Circular Computing Partnership: Executive Perspectives

In a prepared statement about the partnership, Total IT Global CEO Akhil Gupta said: "This collaboration will open new vistas for enterprises to choose responsibly and make a measured impact towards sustainability. With Circular Computing's technology and Total IT Global's worldwide presence and capabilities in Device as a Service (DaaS), we can introduce a whole new way of deploying hardware to the world."

Added Circular Computing Founder and CEO Rod Neale: "We're excited to collaborate with Total IT Global which has a global presence supporting the end customers' digital journey. Sustainability is high on the agenda for business leaders, but it's never going to have scale unless we can commercialise it. We've achieved that now in Europe, and have a rapidly growing list of business customers that rely on us to deliver a sustainable and socially responsible way to buy enterprise-grade IT.

Neale concluded: "High-quality, reliable, second-life hardware is a big part of the solution to both climate change and the e-waste crisis, and this partnership is yet another stepping stone towards making a truly circular economy a reality. Remanufacturing is the new new, and I couldn't be happier with the progress the industry has made in recent months."

Sustainable IT Services and MSPs: Channel Partner Adoption Rates Vary

Meanwhile, research suggests channel partners are addressing sustainability at differing rates across Europe, North America and other regions, according Canalys research.

Anecdotal evidence suggests a small (but growing) number of MSPs offer sustainable IT services in the United States, while also developing net-zero greenhouse gas (GHG) emissions strategies for their own businesses.